[1] Construction from the Central Western Line commenced at Lagoon Creek, 1 mile (1.6 km) west of the Barcaldine railway station, on 14 February 1912.

In August the line reached the halfway point, and on 12 September the 21 miles (34 km) of track to Mildura siding were officially opened to traffic.

[1] When passengers had alighted, the train was reversed onto a side line which led to the goods shed and the wool loading platform, back in the direction of Aramac Creek.

Here goods and parcels were unloaded into the shed which still stands, and a row of trucks and wagons lined up on the other side of the concrete platform to collect merchandise for the town's businesses.

From places all over the shire, goods, passengers and business which had once gone by road to the government railway stations at Longreach, Barcaldine or Jericho now all converged on the town of Aramac.

[1] The graziers and shopkeepers who made up the Aramac Shire Council found themselves in the unfamiliar business of running a railway, and it was to form a prominent part of their agenda for the next 62 years.

Running expenses had to be watched very closely, and many Council meetings became largely concerned with tramway management issues such as timetables, claims for delayed goods, locomotive maintenance, mail contracts and coal purchases.

[1] Experience showed that the old Engine No 1 was not sufficiently powerful to operate the line, and in November 1914 Council resolved to call tenders for a second larger B15 steam locomotive.

Drought, industrial unrest, and the economic slowdown brought on by the departure of volunteers from throughout the district to the First World War all combined to reduce traffic on the tramway.

[1] The Council managed to keep the operations of the tramway running profitably during this difficult time, but only at the twin costs of making the service less attractive to customers, and reducing maintenance on the line.

[1] The decision to dispense with engineering advice and reduce track maintenance to only the minimum level of necessary repairs was a critical moment in the Aramac tramway's history.

While successfully cutting operating costs in the short term, it meant that the tramway would have to carry smaller loads at slower speeds, giving customers a declining level of service over the years.

[1] Traffic steadily declined as the 1920s advanced, and although the tramway continued to provide an economic benefit to the Aramac district, Council struggled to break even financially in most years.

The damage to the line stopped all traffic for weeks, and the lost revenue combined with the cost of repairs sent the accounts for the year heavily into the red.

Council had to levy a special rate to pay the tramway's expenses, and was unable to meet its loan repayments that year; there was no option but to go to State Treasury and negotiate a three-year suspension of payments.

The deepening depression made the situation even worse, and saw staff retrenchments and the withdrawal of concession fares and freight rebates for primary producers.

The first was brought about by a dramatic boom in the post-war rural economy, which saw the price of some agricultural products increase by as much as ten to twenty times between 1939 and the early 1950s.

Traffic on the tramway picked up steadily from 1945 onwards, and while there was still a large burden of debt to overcome before the Council could think about declaring a profit, operations by the early 1950s were again running at a more comfortable level.

In 1957 the Railways Department gave Council an ultimatum that unless the track was substantially upgraded, it would no longer permit government-owned rolling stock to be used on the Aramac run.

While this arrangement was in force, the great floods of January 1974 caused major damage to the line, and the cost of repairs dramatically increased the debt.

[1] The progressively increasing debt to the Queensland Government added to the money owed to Treasury over the entire life of the tramway, since the original loan of 1911.

[1] The next wave of interest in the conservation of the remaining relics of the tramway came from two schoolteachers who galvanised community members into organising a local historical museum based at the goods shed.

[1] The Tramway Museum has also become a focus for local historical activity generally, and in recent years people have donated a number of items which have been stored in and around the goods shed.

[1] The interior of the goods shed is dominated by the railmotor "Aunt Emma", which is positioned in a cage of steel pipe and wire mesh running down the central axis of the building.

There are a wide range of household items, including clothing, chinaware, shaving gear, electrical appliances, musical instruments, typewriters, slide projectors, gramophones, sewing machines, trophies, and a large collection of glass bottles.

Several books are lying loose, some of general interest such as a home medical textbook, others of great relevance and value to the tramway such as an original manual for the railmotor's Gardner diesel engine.

This very small steel-framed corrugated iron clad building dates from the tramway's last years of operation, and was probably built in 1958 to house the first diesel locomotive.

[1] Near the southern end of the shelter is a small toolshed or workshop, timber-framed and clad with corrugated iron, which houses a maintenance trolley, a blacksmith's forge and other tools.

Near the cattle yards there are some timber pieces of the railway station building lying loose, including the base of a 30 centimetres (12 in) diameter post set in concrete.

Aramac Tramway Museum demonstrates a rare and unusual aspect of Queensland's cultural heritage as an example of a railway service operated by a local community.